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Samsung should officially recall exploding phone: Watchdog

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Meanwhile, Samsung is conducting a series of quality tests for the upcoming shipments of Galaxy Note.

"I can't comment on exactly how much the cost will be, but it pains my heart that it will be such a big number", he said. Although there is a recall, customers could exchange their Galaxy Note 7 with another unit via the retail store they purchased the smartphone. A report by SamMobile, shows that Oculus VR company is warning its customers against the use of Gear VR headsets with Samsung Galaxy Note 7 smartphones.

"However, because our customers' safety is an absolute priority, we have stopped sales of the Galaxy Note 7". The company said it's suspending sales of the new flagship phone, and any customers who already have the phone will receive a free replacement in the coming weeks.

Samsung issued the worldwide recall of the Galaxy Note 7 because of reports that the battery of the smartphone explodes, causing the device to catch fire. "This is some major buzz-kill for Samsung, especially given all of the hard-earned excitement that products like the Note 7 have been garnering lately", IDC analyst Bryan Ma said. The only thing we know for sure is that the Galaxy Note 7 has lost momentum, and if Samsung was trying to capture the market before the Apple iPhone 7 was introduced, they have failed.

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So far, Samsung says there have been 35 cases where battery issues were reported.

However, Samsung is actively trying to deal with this matter and has announced that the faulty Note 7s would be replaced. "Nevertheless, the reason we made this decision is because what is most important is customer safety".

Option 1: Exchange Galaxy Note 7 for new Galaxy Note 7. Similar to T-Mobile, AT&T allows its customers to return the Note 7 and get a new one when Samsung is done with the recall and the new smartphones are available. Due to the manufacture of the replacement units and less sales, Samsung's operating profit could be cut by approximately $360 million.

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